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Everything Else Held Constant,if the Expected Return on U

Question 81

Multiple Choice

Everything else held constant,if the expected return on U.S. Treasury bonds falls from 10 to 5 percent and the expected return on GE stock rises from 7 to 8 percent,then the expected return of holding GE stock ________ relative to U.S. Treasury bonds and the demand for GE stock ________.


A) rises;rises
B) rises;falls
C) falls;rises
D) falls;falls

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